Legislative

State Budget

Most of the Legislative Department's work during the first four months of 1998 was concerned with the proposed 1998-99 State Budget. The Legislature adopted a new method of budget deliberation this year that speeded up the process and required some adjustments in our communications with legislators. Ultimately, we were successful in getting the Legislature to address several of our key issues, but many of these actions were later vetoed by the governor.

This year, each house decided to pass its own version of the budget during March. Since their bills were not the same, this required them to then discuss compromises to reach a final budget package. The leaders then appointed a budget conference committee which met and agreed on big-picture targets for the budget and general policy issues. This committee met in public during a three-week period.

The leaders also appointed nine budget subcommittees. The subcommittees were assigned certain parts of the budget and were given fixed amounts of money that they could add to the Executive Budget. In some cases, the subcommittees also made recommendations on policy and language issues.

This change created pressure for a faster resolution of differences, leading to a budget agreement that was adopted by both houses on April 14. Unlike prior years, many of the amendments adopted by the Legislature were not negotiated with the governor prior to adoption, so there was no assurance that the governor would agree with them. The governor has 10 days to veto and he has the power of line-item veto on any spending added by the Legislature.

OMH – Added $1 million for state staff to improve staffing ratios.

S6104-C

OMRDD – Added $900,000 for state staff to improve staffing ratios.

S6104-C

DOCS – Added $1 million for program-services staff.

Added $1 million for support services professional staff.

Added $400,000 for educational staff including bilingual.

S6104-C

DOCS – Added $100,000 for personal alarms for civilian staff.

S6104-C

DOT – Included language requested by PEF to require that $15 million in engineering services funds be used to employ added state engineering staff and not to hire consultants.

S6098-B p. 51.

Office for Technology – Included language requested by PEF to require OFT to study the use by all state agencies of computer consultants with the goal of reducing the reliance on consultants, and to report to the Legislature by October 1.

S6096-B p. 7.

Department of Civil Service – Included language requested by PEF to require DCS to study recruitment and retention problems in state agencies in computer-programming titles including a review of compensation levels and to report to the Legislature by October 1.

S6096-B p. 3.

During the course of subcommittee deliberations, PEF members heard reports of possible cuts in staff being proposed in several agencies. We believe we were able to get these corrected in the final agreement and there should not be any layoffs as a result of this budget. While there will be job gains in some areas, the funding in OMH and OMRDD will not be sufficient to prevent a continued reduction in workforce by attrition in those agencies.

Governor Vetoes Portions of Budget

On April 26, the governor announced that he would line-item veto many of the items added by the Legislature in the adopted budget bills. The governor's vetoes included $763 million of spending in the operating budget and an additional $843 million of bonding approved by the Legislature.

Unfortunately, the items vetoed by the governor include many of the PEF issues addressed above, as well as those of many other unions and groups. The added funding for OMH and OMRDD staff was eliminated, as was the added funding for staff in DOCS. The governor also vetoed the language that requires DOT to spend at least $15 million of the engineering-services fund on hiring state engineers, rather than consultants. However, the state administration has subsequently approved the hiring of about 450 additional personnel in DOT as well as a significant number of computer programmers. Both of these were priority budget issues for PEF. This represents the achievement through administrative action of some of the goals we sought to advance in the budget.

Legislation Other than Budget Bills

PEF was involved in supporting and opposing a wide range of bills this year. Here are some of the major ones:

Pension Legislation

Both houses of the Legislature passed four significant bills affecting the pension system:

1. Pension Supplementation

(S7792/A11349)

This bill grants a one-time increase in pension benefits to retirees in the New York State & Local Retirement System, as well as the Teachers Retirement System and the New York City systems. It provides some increase to all members who retired in 1992 and before.

Signed by governor- Chapter 390

2. Tier Equity (S5002B/A7907B)

This bill is part of the original tier-equity plan proposed by Comptroller McCall. It benefits Tier 4 members and indirectly Tier 3 members since they can opt to retire under Tier 4.

Signed by governor- Chapter 266

3. Five-Year Vesting (S7781/A11130)

This bill grants vested status in all public-pension systems after five years. Previously, the law required 10 years to vest.

Signed by governor- Chapter 389

4. Death Benefit (S7782/A11129)

This bill grants a death benefit to the survivors of a member who dies after leaving public employment, but before beginning to collect his or her pension. The benefit is a lump sum of 1.5 times final average salary for most members.

Signed by governor- Chapter 388

Unemployment Insurance Reform (S7817/A11396)

The Legislature passed a major unemployment-insurance-reform bill that was negotiated among representatives of labor, business and the governor. It increases benefits and makes several other changes in the unemployment-insurance system. PEF successfully lobbied for the bill to include funding for an employment service program in the state Department of Labor. This provision will create a dedicated funding source that management says will fund about 400 new jobs in DOL, many of them PEF titles.

SUNY Flexibility Legislation (S2597A/A3599A)

This bill grants greater flexibility and local control to SUNY hospitals to allow them to respond to changes in the health-care market. It keeps them as state-operated hospitals and as part of SUNY and also contains provisions protecting employee rights. PEF supported this bill while opposing attempts by SUNY management to push a more drastic approach, which could have weakened our members' job security.

as of September 21, 1998

S7817 (A11396) Unemployment Insurance Reform

A6946 (S5462A) When any classified civil service position in suny is changed to unclassified, change must be approved by civil service commission

Veto 1400 S6976 (A9799A) Extends filing deadline to 12/31/99 to allow eligible retirement system members to receive service credit or retroactive membership

Albany Parking – the Assembly passed a permit-parking bill opposed by PEF (A10803) but we stopped it in the Senate.

Jenna's Law – The Senate and Assembly were unable to agree on a version of this bill so no final action occurred before the end of the regular session. However, a special session of the Assembly to consider this issue occurred on July 29, at which time the Assembly passed the Senate version of Jenna's Law. This bill includes PEF's top priority goal by requiring post-release supervision of all violent felons, and is, therefore, a positive achievement in preserving the essential role of the parole officers. It does not include certain other reforms that PEF supported, such as requiring more education and drug-treatment programs for inmates. This bill was signed by the governor as Chapter 1.

Department of Labor

PEF has been working with SEIU to oppose attempts to privatize federally funded employment services administered by the Department of Labor. We have contacted targeted New York representatives to ask for their support of continuing this as a public function. So far, we have been successful in our efforts to resist privatization language. Congress adopted a "Workforce Investment Act of 1998" that neither prohibits nor mandates privatization. It does alter the federal employment system significantly, requiring a move toward "one-stop shops."

NYHESC

PEF has worked throughout the year with both AFT and SEIU to oppose legislation that would undermine the continued viability of New York State's student loan program, which is administered by PEF members at NYHESC. It appears that the most threatening proposals have been defeated again this year and that the final bill will allow for a continued role for NYHESC in the loan program.

Social Services Privatization

PEF has worked to support SEIU in a battle over plans by the State of Texas to privatize administration of social services programs. As of this date, we have been successful in stopping this privatization push. Several New York representatives were contacted by PEF members on this issue and were supportive of our position.

Transportation Funding

PEF worked with SEIU to advocate for fair funding for New York in the extension of the Federal Transportation funding authorization. The final bill provides fair funding for the New York highway program as well as mass transit.